This quiz works best with JavaScript enabled. Home > Economy > Business > Business Economics – Quiz 29 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Business Economics Quiz 29 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Resources (a.k.a. the factors of production are) A) Land and Labor. B) Land and Capital. C) Entrepreneurship. D) Land, Labor, Capital and Entrepreneurship. Show Answer Correct Answer: D) Land, Labor, Capital and Entrepreneurship. 2. Economic theories are ..... A) Hypothetical. B) Accurate. C) Both (1) and (2). D) Neither (1) Nor (2). Show Answer Correct Answer: A) Hypothetical. 3. Marshall defines economics as A) The study of mankind in the ordinary business of life. B) The study of human behaviour as a relationship between ends and scarce resources. C) An Enquiry into the Nature and Causes of wealth of Nations. D) None of these. Show Answer Correct Answer: A) The study of mankind in the ordinary business of life. 4. Nominal GDP ..... = Real GDP A) Inflation. B) Unemployment. C) Imports. D) Exports. Show Answer Correct Answer: A) Inflation. 5. Which type of business organization has the advantage of limited liability but the disadvantage of less control over business decisions? A) Perfect competition. B) Partnership. C) Sole proprietorship. D) Corporation. Show Answer Correct Answer: D) Corporation. 6. According to the circular flow model, which of the following is TRUE? A) Firms supply resources and households demand outputs. B) Households supply resources and firms supply output. C) Firms supply both the resources and output used in production. D) Households demand both resources and outputs. Show Answer Correct Answer: B) Households supply resources and firms supply output. 7. Margarine is a good substitute for ..... A) Butter. B) Cheese. C) Cheddar. D) Bread. Show Answer Correct Answer: A) Butter. 8. The quantity of a good or service that consumers are willing and able to buy at a particular price during a specific time period. A) Demand. B) Supply. C) Price. D) Production Cost. Show Answer Correct Answer: A) Demand. 9. What is not an advantage of a monopoly? A) Achieving economies of scale. B) High level of research and development. C) Producing a greater quantity at profit-maximizing level of output. D) Higher prices and lower output. Show Answer Correct Answer: D) Higher prices and lower output. 10. Disadvantages include limited life and the potential for conflict between partners A) Sole Propriotorship. B) Partnership. C) Corporation. D) Franchise. Show Answer Correct Answer: B) Partnership. 11. If a town has 60 employed workers and 15 unemployed workers, what is the town's unemployment rate? A) 15%. B) 25%. C) 20%. D) 33%. Show Answer Correct Answer: C) 20%. 12. The study of how people choose to use limited resources to satisfy their unlimited needs and wants. A) History. B) Economics. C) Social studies. D) Psychology. Show Answer Correct Answer: B) Economics. 13. Which of the following is an advantage of sole proprietorships: A) Limited liability. B) Unlimited financial power. C) Dual taxation. D) Quick decision making. Show Answer Correct Answer: D) Quick decision making. 14. Other things equal, if a good has more substitutes, its price elasticity of demand is: A) 1.larger. B) 2.smaller. C) 3.zero. D) 4.unity. Show Answer Correct Answer: A) 1.larger. 15. How is a corporation different from a sole proprietorship? A) Corporations are owned by only one person. B) Corporations can sell stock to raise money for the business. C) Sole proprietorships have limited liability for the owners. D) Sole proprietorships require a legal charter to start the business. Show Answer Correct Answer: B) Corporations can sell stock to raise money for the business. 16. Ford and Toyota sells the same products; it evident that there is a ..... A) Competition. B) Distribution. C) Alliance. D) Threats. Show Answer Correct Answer: A) Competition. 17. The phase of the business cycle where real GDP grows for two or more consecutive quarters is termed ..... A) Growth. B) Recession. C) Balance of payments. D) Gross domestic product. Show Answer Correct Answer: A) Growth. 18. Since micro economics splits up the entire economy into smaller parts for the purpose of intensive study, it is also known as A) Slicing method. B) Bulldozer method. C) Micro-macro method. D) Micro foundation of macro method. Show Answer Correct Answer: A) Slicing method. 19. The process of changing an industry from public to private ownership. A) Privatization. B) Public marketing. C) Socialization. D) Economic change. Show Answer Correct Answer: A) Privatization. 20. The main disadvantage of a ..... is that each person is fully responsible for the acts of all other persons. A) Proprietorship. B) Partnership. C) Corporation. D) Franchise. Show Answer Correct Answer: B) Partnership. ← PreviousNext →Related QuizzesEconomy QuizzesBusiness Economics Quiz 1Business Economics Quiz 2Business Economics Quiz 3Business Economics Quiz 4Business Economics Quiz 5Business Economics Quiz 6Business Economics Quiz 7Business Economics Quiz 8Business Economics Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books